The Chairperson of the Competition Commission of Pakistan (CCP) Rahat Kaunain Hassan has directed the companies to refrain from entering into arrangements of retail price maintenance (RPM), as it is a form of price fixation and anti-competitive practice.
The Competition Commission of Pakistan (CCP) held a learning and awareness session with the members of Overseas Investors Chambers of Commerce & Industry (OICCI) hosted by one of its members, Unilever Pakistan. The purpose of the session was to sensitize OICCI member firms on the importance of fair marketing practices and the repercussions of violating Section 10 of the Competition Act, 2010 for consumers, businesses, and the economy in general.
Speaking to the marketing firms, the chairperson highlighted that undertakings must refrain from entering into arrangements of retail price maintenance (RPM) as it is a form of price fixing and globally in majority of the jurisdictions it is taken to be by nature anti-competitive.
She said that the choice to offer forms of discount or package deals is an important part of the negotiating process with consumers, which should be left to dealers as per their own independent commercial decisions. This, coupled with the manufacturer fixing prices, diminishes consumer bargaining power.
She said that deceptive marketing practices have a direct impact on consumers and businesses and therefore, firms that are engaged in the business of marketing and selling consumer goods and services must avoid deceptive marketing practices while advertising their products and services. The objective of the Office of Fair Trade at CCP is not merely deterrence but encouraging compliance and corrective behavior in enforcing the provisions of Section 10.
She shared that guidelines in light of the Commission’s decision will be issued shortly to lend clarity and help understand the precautionary principles relating to deceptive marketing.
Responding to several questions from the participants, she informed that under the Act, the undertakings can seek advice and clarity from CCP on any actual competition matter where any potential violation is apprehended to avoid such violation. She urged businesses to come forward and flag all aspects where any practice or policy is resulting in competition infringement or market distortions as CCP is committed to providing fair play to businesses.
